STUDENT FINANCIAL AID

HOW IT WORKS

It costs money to be a student. Aside from the tuition and fees that a student must pay to
the university, a student must buy books and supplies, pay for transportation to and from
school, and cover personal expenses such as meals and housing. Many students and their
families are unable to come up with the money needed to cover all of these expenses. To help
these students and their families supplement their own resources, financial aid is available.

Financial need is the determining factor and is the crucial criterion for most types
of aid. (There are some loan programs for students and parents of students for which need is
not a criterion. See the following section on Program Highlights for the various options
available. Some scholarships do not include need as a criterion.)

So what is need? Need is the difference between what it costs to go to college and
what the student and family can afford to contribute towards those costs.

The basic financial aid formula:

What It Costs to Attend- What the Student and Family Can Pay
= Financial Need

Students are generally eligible to receive assistance through financial aid in the amount
up to their financial need.

Types of Financial Aid

Grants and Scholarships. Grants and scholarships are awards of money that do not have
to be paid back. Grants are usually awarded to students with need. Scholarships have varying
criteria which may or may not include financial need. Often scholarships are rewards for
academic achievement.

Work-Study. The Work-Study program enables students to earn money from part-time
jobs on campus and off campus at approved non-profit organizations.

Loans. Loans are funds that have to be paid back, usually after a student has
graduated or left school. Students are asked to complete entrance and exit interview
requirements if they choose to borrow money through the student loan programs.

The Office of Student Financial Aid may award a student a combination of grants, loans, and
work in order to meet the student's need. At SFSU, financial aid funds are provided by the
federal government and the State of California. The university scholarships are generally
gifts from individuals and organizations.

APPLYING FOR FINANCIAL AID

In order to determine what the student and family can pay towards the student's educational
expenses, the student must apply for financial aid. A nationally established formula computes
the family's contribution using information regarding the family's income, assets, and number
of family members in college. For a student who is considered to be dependent, the student and
the parents complete the application. For students considered to be independent, the student
and spouse (if married) complete the application.

The first step in applying for financial aid is to complete the Free Application for
Federal Student Aid (FAFSA) and submit it to the Federal Student Aid Programs beginning in
January and by the priority date of March 2nd prior to the upcoming academic year. The FAFSA
is available over the Internet at www.fafsa.ed.gov and
from high schools and college financial aid offices. In order for SFSU to receive an
electronic copy of the FAFSA, the student must include "San Francisco State University" and the
code number "001154" on the college release section of the FAFSA.

About four weeks after the student submits the FAFSA, the student will receive a document
called the Student Aid Report, and SFSU will receive the electronic copy of the FAFSA. SFSU
will notify the student to submit verification documents if necessary. Verification documents
may include the IRS tax forms and documentation of household size.

The FAFSA is the basic application for all types of aid. Some grants, fellowships, and
scholarships require an additional application and have different deadlines. See the Program
Highlights section below for details.

GENERAL ELIGIBILITY REQUIREMENTS

To receive federal student aid, a student must be a citizen, national, or permanent
resident of the U.S.; must be enrolled in an academic program leading to a degree or
certificate; must not owe a repayment on any previous federal and/or state grant; must be in
good standing on previous student loans; and must have a social security number. Additionally,
to receive state aid, a student must be a resident of California.

Satisfactory Academic Progress

To continue to receive financial aid at SFSU, students must complete in a semester the
number of units required for the aid that they received. They must remain in good academic
standing with the university. Undergraduate students are eligible to receive aid only until
they receive a bachelor's degree or earn a maximum of 175 units; graduate students are
eligible to receive aid only until they earn their degree or earn 75 semester units. Students
who change their majors/minors, who are pursuing double majors/minors, or who are attempting
second baccalaureates will be held to the same maximum time frame.

ESTIMATING EXPENSES

Each year the Office of Student Financial Aid establishes standard budgets to reflect the
expenses for students attending SFSU for the nine-month academic year. The budgets differ for
students living with their parents and for students living in campus housing or in off-campus
housing. The standard budgets used for 2004-2005 are detailed below
(undergraduates only). Non-resident students pay $339 per academic unit plus resident fees.

Student Expenses for Nine Months2004-05
For Students Enrolled in Seven or More Units

At Home with Parents

On- or Off-Campus Housing

Resident Fees

$2,880

$2,880

Meals and Housing

3,240

10,458

Books and Supplies

1,260

1,260

Personal Expenses

2,400

2,400

Transportation

1,134

1,134

Total Expenses

$10,914

$18,132

PROGRAM HIGHLIGHTS

The Federal Pell Grant Program is a federal aid program for undergraduate students and
students in teaching credential programs with exceptional need. Grants range from $400 to
$4,050 per academic year. Enrollment requirement: full time = 12 units; three-quarter
time = 9-11 units; half time = 6-8 units. Award is prorated depending upon enrollment.

The Federal Supplemental Educational Opportunity Grant (SEOG) is a federal program which
provides aid to undergraduate students with exceptional financial need. Annual awards at SFSU
range from $100 to $750.

The State University Grant is a grant for students who are California residents, who pay
state resident fees, and who have exceptional financial need. This grant is awarded to
undergraduates and graduates in amounts based on the amount of resident fees they are
required to pay. Annual awards for 2004-05 range from $1,356 to $2,820.

The Educational Opportunity Program Grant (EOP) is a grant provided by the State of
California for undergraduate students admitted to the university through the Educational
Opportunity Program. EOP students must have financial need and must be enrolled full time to
receive the grant. Awards range from $100 to $1,000 for the academic year, depending on the
availability of funds and the need of the students.

The California Student Aid Commission awards grants to students who are California
residents. For new applicants, the deadline to apply for the different programs is March 2nd
prior to the upcoming academic year (for example, for the 2005-06 academic year, the deadline
is March 2, 2005). In addition to the FAFSA, a Grade Point Average (GPA) Verification form
must be submitted to the commission by the March 2nd deadline. More information about the
grants discussed below can be provided by high school counselors, financial aid offices, and
the California Student Aid Commission at www.csac.ca.gov
or (888) 224-7268.

Cal Grant A is awarded by the State of California for entering and continuing
undergraduate students who are California residents and demonstrate academic achievement
and financial need. Awards cover a portion of the amount of resident fees per academic year.

Cal Grant B is awarded to entering students from disadvantaged, low income families.
Awards include a stipend of up to $1,551 and, after the first year, also cover a portion of
the resident fees for the academic year.

The Law Enforcement Personnel Dependents (LEPD) Scholarship Program provides educational
grants to needy dependents and spouses of California peace officers (highway patrol,
marshals, sheriffs, police officers); and employees of the Department of Corrections or
Youth Authority; and permanent and full time fire fighters employed by counties, cities,
districts, and other political subdivisions of the state who have been killed or totally
disabled in the line of duty. The death or disability must have been the result of an
accident or injury caused by external violence or physical force incurred in the performance
of duty. Scholarships are in amounts equal to the amount provided a student who has been
awarded a Cal Grant.

Presidential Scholars Program. San Francisco State University is pleased to offer this
special program for a select group of newly admitted freshmen each Fall. This is the most
distinguished academic award the university can bestow on an entering undergraduate student.
Selection as a Scholar is determined on academic merit (minimum GPA of 3.8) and carries a
renewable scholarship that is equivalent to a full year of university academic fees (currently
$2,880 per year).

Scholars become part of a small, close-knit group at San Francisco State. Special seminars,
mentoring, and chances to take some classes as a group make the Scholars program an academic
enrichment opportunity that helps develop the student's intellectual talents to the fullest.
This program offers the personal attention that is expected only in a small college together
with the range of academic programs, academic facilities, and faculty expertise that only a
major university can offer.

University Administered Scholarships are awarded to students based on academic achievement
and financial need. A separate application is required for scholarships directly administered
through the Office of Student Financial Aid. Some academic departments on campus also have
university scholarships. Students should check with the college or department office about
other scholarship opportunities.

Outside Scholarships. The Office of Student Financial Aid has information on some outside
scholarships. Students are encouraged to contact organizations such as Marin Educational
Foundation, parent-teacher groups, community service organizations, employers, etc. for
scholarship information. Reference desks in university and public libraries also provide
scholarship resource materials.

The Federal Work-Study Program provides employment opportunities to both graduate and
undergraduate students with financial need. Work-Study positions are available both on-campus
and off-campus with certified non-profit agencies. Students may work a maximum of twenty hours
per week. The salary scale ranges from $8.00 to $14.81 per hour. A Work-Study award is not a
cash award like a loan or a grant. To use a Work-Study award, a student must find a Work-Study
job with a certified Work-Study employer; then the student will receive a monthly paycheck.
It is recommended that students seek employment as early as possible because jobs are limited
and a Work-Study award is not a guarantee of employment.

The Federal Perkins Loan is a federal program providing long-term, low interest loans to
students who are enrolled full time. Awards at SFSU
depend upon the availability of funds and generally range from $300 to $2,000 per academic
year. Interest of 5% begins nine months from the date the borrower is no longer enrolled at
least half time. Repayment, at a minimum rate of $90 quarterly, begins three months after
interest starts to accrue. Information regarding deferments, cancellations, and repayment
provisions is provided on the loan promissory note. An entrance interview is required for all
first-time borrowers at SFSU.

The William D. Ford Federal Direct Student Loan Program (FDSL) has two components--the
subsidized loan and the unsubsidized loan. The Subsidized Loan is available to students
who have financial aid eligibility. The interest is paid by the federal government while the
student is in school. The Unsubsidized Loan is available to students who have limited
or no financial aid eligibility or who need to borrow an additional amount of loan. The
interest on an unsubsidized loan must be paid by the student while enrolled in school, and
during any grace or in-school deferment periods. A student may choose to have the interest
deferred, which adds the deferred interest to the principle. This is called capitalization.
Having the interest capitalized will mean larger monthly payments when the student begins
repayment.

The FDSL maximums vary depending on the student's class level and dependency status.

ANNUAL LIMITS FOR FDSL PROGRAM

Dependent Students

Academic Year

Maximum FDSL Sub. & Unsub.

Freshmen

$2,625

Sophomore

3,500

Junior, Senior

5,500

Independent Students

Academic Year

Maximum FDSL Sub. & Unsub.

Freshmen

$ 6,625

Sophomore

7,500

Junior, Senior

10,500

Credential

10,500

Classified Graduate

18,500

For all Federal Direct Student Loans, the interest rate is variable and is dependent upon
the 91-day Treasury bill, plus 3.1 percent with a cap of 8.25 percent. An origination and an
insurance fee totaling 1.5 percent will be deducted from the loan amount before the
disbursement. For example, a $5,500 loan will produce $5,417 in revenue to the student.

Loan repayment begins at the end of a six-month period after the student leaves school or
ceases to be enrolled on at least a half-time basis. If the student is enrolled less than half
time, she/he is considered to be in grace period. Various loan repayment options are available.
An entrance interview is required for all first-time borrowers.

Parent Loans (PLUS) provides loans through banks and other participating lending
institutions for parents of dependent students. Financial need is not a factor in determining a
parent's eligibility for this loan program. The interest rate is variable, from
5% to 12%.
Interest begins to accrue when the loan is disbursed. Repayment begins 60 days after the loan
is disbursed. The loan limit for Parent Loans is equal to the student's budget less financial
aid awarded.

Short-Term Loans are available for a maximum of $500 on a 30-day repayment basis. The
purpose of the short-term loan is to help students with unanticipated expenses which are
school-related. Students may pick up an application from the Bursar's Office.

INDIVIDUAL HELP

Students should call, write, or visit the Office of Student Financial Aid--(415) 338-7000,
e-mail: finaid@sfsu.edu--if they have questions or for
individual help. Counselors are available to assist students in person during
office hours.